Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Q2 2023 Earnings Presentation
26 slides from Lument Finance Trust's earnings presentation, Aug 9, 2023
Slide 1: Lument Finance Trust Q2 2023 Earnings Supplemental
Lument Finance Trust Q2 2023 Earnings Supplemental August 2023
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the current views of Lument Finance Trust, Inc. (NYSE: LFT) (“LFT,” the “Com
Slide 3: Company Overview and Key Investment Highlights
Company Overview • The Company is an externally-managed real estate investment trust focused on investing in, financing and managing a portfolio of commercial real estate debt investments. • The Company is externally managed by Lument Investment Management, an affiliate of ORIX Corporation USA. Key
Slide 4: Q2 2023 Updates
Q2 2023 Updates • Q2 2023 GAAP net income attributable to common stockholders of $1.4 million, or $0.03 per share of Financial common stock. Q2 2023 Distributable Earnings(1) of $1.9 million, or $0.04 per share of common stock. Results • Q2 2023 Book Value Per Share of Common Stock of $3.43(2). • Th
Slide 5: Q2 2023 Balance Sheet Summary
Q2 2023 Balance Sheet Summary Balance Sheet June 30, (thousands) 2023(1) Commercial mortgage loans held-for- $1,017,145 investment (net of allowance for credit losses) Cash and cash equivalents 98,496 Restricted cash(2) 1,274 Accrued interest receivable 5,866 Investment related receivable 0 Other as
Slide 6: Q2 2023 Income Statement Summary
Q2 2023 Income Statement Summary Three Months GAAP Net Income to Distributable Three Months Summary Income Statement Ended June 30, Earnings Reconciliation Ended June (thousands) 2023 (thousands) 30, 2023 Net interest income $7,509 Net Income attributable to common stockholders(1) $1,389 Total other
Slide 7: Earnings and Book Value Per Share of Common Stock
Earnings and Book Value Per Share of Common Stock GAAP Earnings & Distributable Earnings(1) Book Value Per Share of Common Stock(2) Per Share of Common Stock $0.09 $3.55 $3.50 $3.46 $3.43 $0.06 CECL implemented on January 1, 2023. BVPS is $0.04 net of CECL $0.03 reserve of $0.06 as of $0.03 3/31/23.
Slide 8: Investment Portfolio
Investment Portfolio • On June 30, 2023, the Company owned a portfolio of floating-rate CRE loans with a carrying value of $1.0 billion. 89.5%(1) of the portfolio was invested in loans backed by multifamily assets. • The Company anticipates that the majority of loan activity will continue to be rela
Slide 9: Q2 2023 Loan Activity
Q2 2023 Loan Activity • The Company experienced $72.0 million of loan payoffs during the quarter. • The Company acquired $72.9 million of loans during the quarter. Payoffs by Property Type(1) Acquisitions by Property Type(1) Retail, $16.7, Healthcare, 23.2% $17.9, 24.6% $72.0 $72.9 Multi-Family, Mul
Slide 10: Portfolio Credit
Portfolio Credit • 98.8% of the Company’s portfolio is performing, which reflects our strong credit and asset management capabilities. • Increase in weighted average risk rating driven by rising interest rates and broader economic uncertainties. Asset Performance(1) Weighted Average Risk Rating(2) 1
Slide 11: Q2 2023 Capital Structure Overview
Q2 2023 Capital Structure Overview • The Company does not currently utilize repurchase or warehouse facility financing and therefore is not subject to margin calls on any of its assets from repo or warehouse lenders. • Primary sources of financing include a match-term non-MTM CRE CLO (LMNT 2021-FL1)
Slide 12: Net Interest Income Sensitivity to Shifts in Term SOFR
Net Interest Income Sensitivity to Shifts in Term SOFR • 100% floating-rate loan portfolio. • 73.9% of portfolio is indexed to one-month LIBOR and 26.1% of portfolio is indexed to 30-day term SOFR(1). Annual Net Interest Income Sensitivity to Floating-Rate Exposure Shifts in Term SOFR (4) $ in Thous
Slide 13: Appendix
Appendix fa] LUMENT
Slide 14: 6/30/2023 CRE Loan Portfolio Details
6/30/2023 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Initial Term As-Is LTV at # Loan Name Property Type City State (1) Date Date Balance Spread (months) Origination 1 Loan 1 12/16/2021 1/3/2025 Multi-Family Daytona FL 51,375,000 3.05% 37 71.70% 2 Loan 2 11/22/2019 1/5/2024 Mu
Slide 15: 6/30/2023 CRE Loan Portfolio Details
6/30/2023 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Initial Term As-Is LTV at # Loan Name Property Type City State (1) Date Date Balance Spread (months) Origination 22 Loan 22 3/1/2023 9/5/2024 Healthcare Multi VA 17,930,000 4.25% 18 53.00% 23 Loan 23 10/12/2021 11/5/2023 Mul
Slide 16: 6/30/2023 CRE Loan Portfolio Details
6/30/2023 CRE Loan Portfolio Details Closing Maturity Unpaid Principal Note Initial Term As-Is LTV at # Loan Name Property Type City State (1) Date Date Balance Spread (months) Origination 45 Loan 45 11/23/2021 12/5/2024 Multi-Family Atlanta GA 9,856,000 3.35% 36 79.50% 46 Loan 46 1/14/2022 2/5/2025
Slide 17: LMF 2023-1 Collateral Details
LMF 2023-1 Collateral Details Closing Maturity Unpaid Principal Note Initial Term As-Is LTV at # Loan Name Property Type City State Date Date Balance(1) Spread(2) (months) Origination(3) 1 Loan 1 3/22/2022 4/5/2025 Multi-Family Seneca SC 31,876,244 3.35% 37 74.54% 2 Loan 2 6/28/2022 7/3/2025 Multi-F
Slide 18: Consolidated Balance Sheets
Consolidated Balance Sheets 18
Slide 19: Consolidated Statement of Income
Consolidated Statement of Income 19
Slide 20: Detailed Walk of Allowance for Loan Losses
Detailed Walk of Allowance for Loan Losses 20
Slide 21: Reconciliation of GAAP to Distributable Earnings
Reconciliation of GAAP to Distributable Earnings For the Three Months Ended December 31, September 30, GAAP to Distributable Earnings Reconciliation June 30, 2023 March 31, 2023 2022 2022 Reconciliation of GAAP to non-GAAP Information Net income attributable to common stockholders $1,389,185 $4,581,
Slide 22: Detailed Walk of Capitalization as of 6/30/2023
Detailed Walk of Capitalization as of 6/30/2023 (in 000's) 6/30/2023 Total GAAP liabilities and stockholders' equity $1,125,918 Adjustments for Capitalization ( - ) Accrued interest payable (2,542) ( - ) Dividends payable (4,131) ( - ) Fees and expenses payable to Manager (1,660) ( - ) Other account
Slide 23: Pro Forma Capital Structure Overview
Pro Forma Capital Structure Overview • Shown below is LFT’s pro forma capital structure inclusive of the LMF 2023-1 Financing transaction executed post Q2 quarter end. Pro forma capital structure is for illustrative purposes only and does not reflect actual Q2 figures. • LMF 2023-1 is collateralized
Slide 24: Book Value Per Share of Common Stock as of 6/30/2023
Book Value Per Share of Common Stock as of 6/30/2023 Book Value per Share of (in 000's) Common Stock Total stockholders’ equity $239,091 ( - ) Preferred equity (60,000) (1) ( - ) Non-controlling interest (100) Common equity 178,992 Shares outstanding 52,231,152 Book Value Per Share of Common Stock $
Slide 25: Key Definitions
Key Definitions “Book Value Per Share of Common Stock” is calculated as: a) total stockholders’ equity computed in accordance with GAAP less the value of the issued and outstanding preferred stock at its stated liquidation preference of $25.00 per share, divided by b) the weighted average number of
Slide 26: August 2023
=| LUMENT August 2023